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Simple English definitions for legal terms

deferred charge

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A quick definition of deferred charge:

A deferred charge is an expense that is not recognized on a company's income statement right away. Instead, it is recorded as an asset on the balance sheet and will be written off in the future. A common example of a deferred charge is insurance premiums, which are paid in advance but recognized as an expense over the period of coverage.

A more thorough explanation:

A deferred charge is an expense that is not recognized on an income statement but is carried forward on the balance sheet as an asset to be written off in the future. This means that the cost of the expense is spread out over time instead of being recognized all at once.

One example of a deferred charge is insurance premiums. When a company pays for insurance coverage, the cost of the premiums is not recognized as an expense on the income statement right away. Instead, it is recorded as an asset on the balance sheet and is gradually written off over the course of the insurance coverage period.

Another example of a deferred charge could be the cost of a long-term contract. If a company signs a contract to provide services over a period of several years, the cost of fulfilling that contract may be deferred and recognized as an expense over the course of the contract.

These examples illustrate how a deferred charge allows a company to spread out the cost of an expense over time, rather than recognizing it all at once. This can help to smooth out fluctuations in expenses and provide a more accurate picture of a company's financial performance over time.

deferral state | deferred claim

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23:39
you all are so sweet
lilypadfrog
23:39
what is a federal clerkship
shaquilleoatmeal
23:40
15/15 - dolph patience is a virtue lol I promise at the end of the cycle I’ll you. Damn info you’re killin it, chi interview and bu !? Jeopardy, did I miss somethin ?!
JumpySubsequentDolphin
23:40
@lilypadfrog: you get the vision
23:40
@JumpySubsequentDolphin: thats rwally good
23:40
@shaquilleoatmeal: once upon a time i was on jeopardy
texaslawhopefully
23:40
@lilypadfrog: working in a judge's chambers for a year or two
lilypadfrog
23:40
twice upon a time
23:40
9/10
23:40
four times upon a time but twice upon a time i won
lilypadfrog
23:41
@texaslawhopefully: Tex u would lose jeopardy it’s the other way around
23:41
@texaslawhopefully: i believe she was doing the jeopardy bit
texaslawhopefully
23:41
Well I'm completely socially unaware lmao
JumpySubsequentDolphin
23:42
@texaslawhopefully: what is a federal clerkship?
JumpySubsequentDolphin
23:42
did I win
you won my heart jumpy <3
lilypadfrog
23:42
girl who has been on lsd.law for two cycles and remains blissfully unaware of what a clerkship is would be a good bit
23:42
goodnight chatroom crew
texaslawhopefully
23:42
Yeah I probably should have known better
texaslawhopefully
23:43
goodnight info man and good luck tmrw! you're going to kill it
Proud of you, Info!
lilypadfrog
23:43
bye bye info man
23:43
Jumpy that was good too youre cooking
JumpySubsequentDolphin
23:43
@IrishDinosaur: ly <3
JumpySubsequentDolphin
23:43
@JohnLennon: rate it
23:44
8
Dkk
0:24
@info-man: that's cool. I love jeopardy.
should we be expecting any waves tomorrow?
texaslawhopefully
0:49
maybe chicago
good luck then to all u chicago applicants!
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